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Vista Land Eyes Provincial Expansion

Vista Land Eyes Provincial Expansion

Vista Land & Lifescapes, Inc. (Vista Land), the property development unit of billionaire businessman Manuel Villar, will continue to expand its presence in the provinces this year despite the challenge of the crisis in the Middle East which could influence the market to overseas Filipinos.

Vista Land President and Chief Executive Officer Manuel Paolo A. Villar said the company remains bullish and will be building its presence in 100 provinces in the country. So far, Vista Land has already property development projects in 92 cities and municipalities across 35 provinces.

Aside from the possible repatriation of overseas workers from the Middle East due to the rising tensions, Villar pointed out the slight oversupply in the vertical segment of the market as the other major challenge facing the industry. Although the situation is not bad as some people point it based of past events,

Villar said the company is taking no chances and is putting all the necessary steps to ensure the situation would be stable.

Overseas Filipinos provide 55 to 60 percent of the sales of Vista Land.

Government reported that total remittances of OFWs in 2015 totaled $25.7 billion, registering a 4.6% increase than 2014’s $24.6 billion. A big bulk of remittances came from OFWs based in the United States, Saudi Arabia and theUnited Arab Emirates.

In case the situation the Middle East aggravates, Villar said resurgence of the US economy could counteract the impact on the residential segment. The amalgamation of Starmalls will be a driver of Vista Land’s earnings this year after finalizing the acquisition of 88.25% of the mall and office developer.

Vista Land operates in all income segments of the market. Brittany, Crown Asia, Camella Homes, Communities Philippines, and Vista Residences cater to the high-end market in Metro Manila, while Camella Homes has a niche in the low-cost and affordable housing segment.

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BDO Unibank Achieves P25B Profit

BDO Unibank Achieves P25B Profit

Banco de Oro Unibank of the Sy family had an awesome performance last year when it achieved a high of P25.055 billion in its profit. The largest bank in the country in terms of assets also reported a history in local banking when it achieved a major breakthrough by surpassing the P2 trillion mark in assets at the end of 2015.

In its disclosure to the Philippine Stock Exchange, the bank reported that its profit grew to 10 percent to P25 billion. BDO’s performance in 2015 surpassed its competitors Metropolitan Bank and Trust Company (P18.6 billion) and the Bank of the Philippine Islands (P18.3 billion).

The bank also reported an increase in its net earnings by 17 percent from P46.11 billion to P56.9 billion. BDO has shown its muscle in the consumer market when its consumer loans reached P1.3 trillion, indicating a 17 percent upsurge, higher than the industry growth of 13 percent.

Non-interest income experienced an 8% increase to P31.9billion from P29.4 billion coming from service fees, commissions and other bank-related transactions. It has shown financial stability as its capital base stood at P200 billion ‘for the year.

Furthermore, BDO’s capital adequacy ratio (CAR) was pegged at 13.3 percent, much higher than the Bangko Sentral ng Pilipinas’ 10 percent requirement under the international Basel 3 framework. BDO also allotted P3 billion as a standby cover for bad debts incurred in 2015. It also managed to limit its exposure to non-performing loans (NPLs) at 166%. It was also even able to trim the share of gross NPLs, to 1.2% for the year from 1.3% in 2014.

The banking giant has over 1,000 operating branches and more than 3,000 automated teller machines nationwide, alongside an offshore branch in Hong Kong and remittance centers across the globe.


Filinvest Land Sets Aside P20 Billion For This Year’s Projects

Filinvest Land Sets Aside P20 Billion For This Year’s Projects

Filinvest Land, Inc. (FLI) will spend P20 billion this year to sustain the growth of its existing residential and commercial businesses, according to a BusinessWorld report.

Ana Venus A. Mejia, FLI treasurer and deputy chief financial officer, said the company has set aside P20 billion in capital expenditures (capex) this year, but declined to provide the actual spending last year.

In August, the Gotianun-led developer said its capex for 2016 may be lower than the programmed spending of P24 billion in 2015.

FLI is bringing to the market new projects valued at P14.4 billion this year, including three new medium-rise building projects and two additional buildings in existing projects.

Aside from the medium-rise buildings, FLI has 12 horizontal residential projects with an estimated value of about P7.2 billion and two high-rise mixed-use buildings with an estimated value of P4.9 billion.

As part of its plan to triple the gross leasable area (GLA) of its business process outsourcing office buildings by 2019, FLI is targeting to complete two more office buildings – Vector 3 with a GLA of 36,345 square meters (sqm) in Northgate Cyberzone and Pasay Cyberzone with a GLA of 36,807 sqm.

For its retail portfolio, the property company is adding another 46,705 sqm to the GLA of Festival Supermall at Filinvest City in Alabang, Muntinlupa, maintaining its position as the biggest mall in southern Metro Manila.

The Il Corso lifestyle strip, a retail project in South Road Properties in Cebu, will contribute a GLA of 35,000 sqm when completed. FLI has started the construction of malls in Tagaytay City and at its Princeton Heights residential project in Cavite.

FLI registered an operating net income of P5.12 billion last year, up 11 percent from P4.61 billion, supported by a 7-percent increase in consolidated revenues to P16.53 billion from P15.47 billion.

Real estate sales rose 6.4 percent to P14.05 billion in 2015, while rental revenue climbed 9.7 percent to P2.48 billion.

FLI has secured long-term lease deals in Clark, Pampanga: the 201.64-hectare Mimosa Leisure Estate property and the 288-hectare portion of Clark Green City.

FLI is a subsidiary of Filinvest Development Corp., the holding firm for the Gotianun family’s businesses in banking, hotel, power, and sugar farming and milling.

Meanwhile, Andrew Gotianun, Sr., the founder of Filinvest Development Corp., passed away on March 10 at age 88.

The net worth of the Filinvest patriarch was estimated at $910 million, making him the 18th richest Filipino in 2015, according to Forbes Magazine.

Gotianun, the chairman emeritus of the Filinvest Group of Companies, is survived by his wife Mercedes and four children, namely Andrew, Jr., Jonathan, Lourdes Josephine and Michael.

Gotianun spent his teenage years salvaging ships in the Visayas to supplement the family income during and after the Second World War. After the death of his father, he found himself becoming the head of his family at age 20.

The volatile nature of the shipping business forced Gotianun and his wife to move to Manila in the mid-50s, venturing into second-hand car financing. In the late 1980s, he decided to focus on real estate.

At the Anvil Business Club in August 2014, Gotianun said aside from hard work, the right attitude is needed to succeed in life and business.

“Be fair in all your dealings, may it be in your family or in your business. At the end of it all, what matters is not how much money you make but how honest you are,” he said.

Today, the Filinvest companies are run by his children. Jonathan is chairman of Filinvest Development Corp. and its banking arm EastWest Banking Corp., while Lourdes Josephine is president and chief executive officer of Filinvest Development and its real estate arm Filinvest Land, Inc.

Ayala Corporation Eyes Water Utility, Power And Real Estate Opportunities In Indonesia

Ayala Corporation Eyes Water Utility, Power And Real Estate Opportunities In Indonesia

The Philippines’ oldest conglomerate, Ayala Corporation, is tapping the capital market to refinance its maturing obligations as it sets sight on opportunities in Indonesia, a BusinessWorld report said. The Ayala board approved the shelf registration of P20 billion bonds to cover its funding requirements until 2019, the company said in a disclosure to the stock exchange.

Of the total, about P10 billion-15 billion may be issued in the third quarter that will be used to refinance debt maturing in April next year, Ayala chief finance officer Jose Teodoro K. Limcaoco said in a briefing.
“We think the markets are conducive. Elections will close the window,” he said.

But the Ayala group is upbeat it can sustain last year’s growth momentum. Net profit rose by a fifth to P22.28 billion in 2015, achieving its goal of earning P20 billion a year ahead of plan.
“We think the economy is in great shape. We think consumer confidence remains, so we are bullish in 2016. We don’t see why we should be worried,” Limcaoco said.

Ayala is earmarking P174 billion in combined capital expenditure this year – higher than the record P130 billion spent last year – to support the growth of its businesses. Ayala managing director Paolo Maximo F. Borromeo said the company is exploring opportunities in Southeast Asian countries that have healthy economies.

Borromeo said Ayala is particularly interested in Indonesia, specifically in water utility, power and real estate, given the nation’s huge market, noting that Manila Water Co. Inc. has sent a business development team to Indonesia.
“We are making a more conscious effort to go international and our focus will be primarily on Southeast Asia across all our businesses,” he said.

The project of Ayala Land, Inc. in Myanmar, however, is on hold, citing difficulties in securing government permits, he said. Despite efforts to expand overseas, the Ayala group’s business will be heavily skewed towards the Philippines, with the contribution of the international operations expected to account for only a tenth of the business, Borromeo said.

In the Philippines, the conglomerate is continuing with its infrastructure push with its interest in bidding for the operation and maintenance of the Light Rail Transit (LRT) Line 2, the P65.09 billion LRT Line 6 and the P170.7-billion South Line of the North-South Railway Project.
“We remain on the lookout for PPP projects. We hope the next administration will continue it,” Borromeo said.

For power generation, AC Energy Holdings, Inc. can more than double this year its 2015 recurring income, Limcaoco said. The holding firm for Ayala’s energy investments contributed a net income of P2.1 billion last year, including an extraordinary gain from the partial sale of its stake in North Luzon Renewable Energy Corp. an 81-megawatt (MW) wind farm in Ilocos Norte.

AC Energy has assembled 600 MW of capacity across conventional and renewable platforms currently in operation and construction. It expects this capacity to reach 1,000 MW this year.

The Ayala group has undergone a transformation that saw the company enter businesses offering services to a larger part of the population, paving the way for investments in education, healthcare, water, telecommunications, power and infrastructure. The conglomerate also has interests in real estate, banking, manufacturing and automotive.

According to the Philippine Stock Exchange, the family-owned Ayala Corporation (AC) was founded in 1834, incorporated in 1968, and was listed in the Philippine Stock Exchange in 1976.

AC is the holding company of the Ayala Group of Companies with business interests in real estate and hotels; financial services and insurance; telecommunications; water distribution and wastewater services; electronics; automotive; business process outsourcing; investments in international or overseas projects and ventures; power generation; transport infrastructure; and education.


Aboitiz Owned AP Renewables Inc. to Issue The First Climate Bonds in Asia

Aboitiz Owned AP Renewables Inc. to Issue The First Climate Bonds in Asia

Aboitz Power has announced that its subsidiary, AP Renewables Inc. (APRI), has signed an omnibus credit facility of P12.5 billion, a BusinessWorld report said. The agreement was signed with the Asian Development Bank (ADB), Bank of the Philippine Islands (BPI) and ADB’s trust fund Credit Guarantee & Investment Facility.

Publicly listed Aboitiz Power is owned by the Aboitiz family. The credit facility includes a P10.7-billion ($225 million) local currency bond and a P1.8-billion ($37.7 million) direct ADB loan. ADB’s credit enhancement comes in the form of a guarantee of 75 percent of principal and interest on the bond.

“The issuance was certified as a Climate Bond in December 2015 by the Climate Bond Initiative and is the first issuance of its kind in Asia,” Aboitiz Power said. BPI Capital Corp. acted as the lead arranger and bookrunner while BPI Asset Management and Trust Group was appointed trustee and facility agent.

Aboitiz Power said the proceeds will be used to finance the partial redemption of APRI’s redeemable preferred shares and the partial funding of its operating expenditure and future rehabilitation requirements. In a separate statement, the ADB said the funds will be used for APRI’s Tiwi-MakBan geothermal energy facilities.

“The successful use of credit enhancement for Tiwi-MakBan reflects our evolving strategy to make creative use of ADB’s expanding balance sheet to support infrastructure investment in Asia and the Pacific,” said Todd Freeland, director general of ADB’s private sector operations department.

“Credit-enhanced project bonds offer an attractive alternative to bank financing and long-term capital can help close the region’s infrastructure gap,” he added. Liza Montelibano, Aboitiz Power chief financial officer and first vice president, said the transaction validates the successful rehabilitation program of the Tiwi-MakBan project.

The company acquired the Tiwi-MakBan complexes in 2009, and has since invested in the rehabilitation of its facilities. “The deal opens a new avenue for financing and refinancing of our various projects, allowing Aboitiz Power to redeploy capital to our large pipeline of new power investments that include renewable energy,” Montelibano said.

At present, the Tiwi-MakBan geothermal facilities have a combined generating capacity of 390 megawatts of Cleanergy.

Aboitiz Power  was incorporated on February 13, 1998 as a holding company for the Aboitiz Group’s investments in power generation and distribution. However, AP was repositioned in the third quarter of 2003 as a holding company that owned only power generation assets.

The divestment of its power distribution assets was achieved through a property dividend declaration in the form of its ownership interests in the different power distribution companies. The property dividend declaration transferred direct control over the Aboitiz Group’s power distribution business to Aboitiz Equity Ventures, Inc.

In 2005, Aboitiz Power consolidated its investments in mini-hydroelectric plants in a single company by transferring all of Hydro Electric Development Corporation’s and Cleanergy, Inc.’s mini-hydroelectric assets into Hedcor, Inc.

Ownership in Aboitiz Power was opened to the public through an initial public offering of its common shares in July 2007. Since its incorporation, the company has accumulated interests in both renewable and non-renewable generation plants.

Among its subsidiaries include Aboitiz Renewables, Inc., SN Aboitiz Power-Magat Inc., Luzon Hydro Corporation and Therma Power, Inc. It also has interests in distribution utilities and retail electricity suppliers.